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Firstfolio has this morning announced plans to acquire three separate mortgage businesses in a bid to ramp up its loan portfolio.
The three acquisitions, including First Chartered Capital’s $3.5 billion loan book, Loan Services Australia’s $2 billion mortgage managed loan book and Xplore Capital’s $400 million mortgage managed book.
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The books are expected to add approximately $6 billion in mortgage assets to the Firstfolio’s existing $12 billion loan portfolio.
Firstfolio chief executive Mark Forsyth said each acquisition would strengthen the company’s three primary areas of focus including wholesale mortgage distribution, ongoing geographic expansion and developing new avenues of distribution.
“To expand the company’s loan portfolio we are looking at opportunities where funders are reducing the number of lenders on their panels, to acquire profitable mortgage operations that will add economies of scale to our loan portfolio, and strengthen underlying earnings,” Mr Forsyth said.
“The First Chartered Capital transaction will offer Firstfolio the opportunity to acquire a 35 franchised retail distribution network, while the Xplore acquisition offers exclusive access to the Amway network in Australia.”
The combined consideration for all three acquisitions involves upfront payments of $15 million in cash, five million shares and an estimated $5 million in deferred payments tied to agreed performance metrics.
